41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 227
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
225
OTHER INFORMATION
Section 5: Working capital
This section focuses on how the Group generates its operating cash flows. Careful management of working
capital is vital to ensure that the Group can meet its trading and financing obligations within its ordinary
operating cycle.
On the following pages you will find disclosures around the Group’s cash position and how cash is generated
from the Group’s trading activities, and disclosures around trade receivables and payables.
Accounting policies
Cash and cash equivalents comprise cash balances and call deposits. Cash equivalents are short-term, highly liquid
investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of
changes in value. Bank overdrafts that are repayable on demand and form an integral part of the Group’s cash
management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.
5.1 Cash and cash equivalents
The Group’s cash position at 31 December 2022 was £38.0 million (2021: £109.4 million).
The Group’s cash balances include £1.1 million (2021: £2.0 million) whose use at the balance sheet date is restricted
by funding agreements to pay operating costs.
The Group generates cash from its operating activities as follows:
Group
Note
Profit for the year
2022
£m
2021
£m
356.4
344.6
7.8
7.8
Adjustments for:
Depreciation and amortisation
Fair value of share-based payments
6.1
Change in value of investment property (owned and under development)
3.1
1.6
(112.7)
2.4
(116.8)
Change in value of investment property (leased)
3.1
9.3
11.1
Net finance costs
4.3
29.1
34.2
Interest payments for leased assets
4.3
8.1
8.5
Mark to market changes in interest rate swaps
4.3
Swap break and debt exit costs
4.3
Loss on disposal of investment property (owned)
Share of joint venture profit
Cash flows from operating activities before changes in working capital
Decrease/(increase) in trade and other receivables
(Increase) in inventories
–
15.6
3.4b
Trading with joint venture adjustment
Tax charge/(credit)
(70.7)
2.5a
(80.4)
(10.9)
4.2
12.0
(122.2)
4.0
19.1
1.6
(1.5)
169.7
192.5
3.6
(52.5)
(1.0)
(2.9)
(Decrease)/increase in trade and other payables
(10.7)
34.2
Cash flows from operating activities
161.6
171.3
Tax paid
Net cash flows from operating activities
(1.4)
160.2
–
171.3
